Soybeans close up 37¢
DES MOINES, Iowa (Agriculture.com)--With the USDA dropping its U.S. soybean yield estimate, the CME Group's soybean market surged higher Thursday.
At the close, the Dec. corn futures contract settled 6 cents lower at $4.66. The Nov. soybean futures contract closed 37 cents higher at $13.96. Dec. wheat futures finished 5 cents higher at $6.53 per bushel. The Dec. soymeal futures finished $19.20 per short ton higher at $447.20. The Dec. soyoil futures closed $0.07 higher at $43.03.
Mike North, First Capital Ag senior risk adviser, says the soybeans rallied on the end-of-day volume and the bullish USDA data that lowered the U.S. yield.
"Anymore, most trade volume happens when the market opens and when it closes. In fact, if the Exchange wanted to condense the market to an hour, it seems like it could. The volume, on the close, underpinned what the report told us," North says.
Because there has been a lot of pent-up trade demand, until this report, watch tomorrow's trade action, he says.
"We could see some sellers come into the market. When we reach that $14.00-per-bushel mark, the U.S. soybeans become uncompetitive on the world market. Plus, the market doesn't want to incentivize South American farmers to plant any additional soybeans."